Microsoft, the world's largest software maker, last night posted better-than-expected fiscal second quarter earnings, buoyed by strong demand for personal computer software.
Microsoft said its net income rose 22 per cent to $2.44 billion, or 44 cents a diluted share, in its fiscal second quarter ended December 31st, 1999, from $1.98 billion, or 36 cents a share, a year earlier.
The rise in profits marked a continuation of a strong year in which Microsoft has exceeded analysts' forecasts as demand remained strong for personal computers, despite fears of a Y2K-related slowdown and a shift to a new Windows 2000 operating system in the new year. Separately, Microsoft argued in a court filing in its antitrust case yesterday that its actions were lawful and it lacked monopoly power due to numerous competitive threats.
In the filing, Microsoft disagreed with many of the findings of fact reached by US district court judge, Mr Thomas Penfield Jackson, last year in which he concluded Microsoft's dominance in personal computer operating systems had harmed consumers, competitors and computer makers.
Outside of the legal arena, the company's new chief financial officer, Mr John Connors, said Microsoft was upbeat about the prospects for Windows 2000, its biggest ever product release, due to take place next month.
Revenue climbed to a record $6.11 billion for the quarter, up 18 per cent from the previous year's $5.2 billion.
The robust results came a week after Intel reported surprisingly strong results and cited hefty demand for personal computers.
